Potent Pricing

It seems like, for the most part, our market seems to be improving, so how important is pricing? 

You know, pricing is one of the hardest issues to deal with as a Realtor, because, quite frankly, every seller feels like their home is better than the competition, and that it’s worth more. Many potential sellers want to believe that their home is an exception to the real estate market downturn we have experienced since 2008. And I hate to be the bearer of bad news, but the reality is that we are still very much in a “price war” and “beauty contest!” Your home has to be priced extremely well in today’s market conditions in order to be the one to have that SOLD sign put in front of your house.

How many homes are currently available?

There are currently almost 5,000 homes available in the greater Albuquerque area. The absorption rate can vary month to month from 10-20%. In other words, 10-20 homes sell per month of the 100 homes available. This means that 80-90 people out of every 100 who would like to sell their home this month are not going to. Supply and demand drive value and I am encouraged by the improvements in our market. Understanding these numbers clearly these indicates that pricing is still critical! I am here to help sellers protect their equity; I’m not trying to beat them up about their price. At the same time, it is my duty to tell my clients the truth, because in pricing the home accurately, it will sell at a higher price in a reasonable amount of time.

It seems like buyers are still being picky about homes to purchase?

Yes! To see that sold sign in today’s market, you really need to be number one, two, or three in the market in terms of your pricing, as well as how well your home shows. You absolutely have to be the best all-around deal! Buyers are far less emotional in today’s market. For years, a buyer would fall in love with a house that they had to have, and then pay a reasonable price for it. Today’s buyers make a value-based business decision when purchasing a home. An agent like myself, with 27 years of experience and over 3,700 home sales has a different level of insight in understanding both buyers and sellers in today’s market. This is critical in negotiating a win-win home purchase.